The energy-intensive world of Artificial Intelligence (AI) in Silicon Valley is creating an unexpected trend: coal-fired power plants are becoming valuable assets again. ## The Resurgence of Coal-Fired Power As AI’s energy demands continue to skyrocket, the power requirements of data centers and other AI infrastructure are outpacing available energy sources. This has led to a surprising revival of interest in coal-fired power plants, which were previously being phased out due to environmental concerns.
The smokestacks of the former Homer City Generating Station were recently demolished to make way for a new natural gas-fired power plant in Homer City, Pennsylvania. This demolition, captured on March 22, 2025, highlights the transition in energy production methods. However, elsewhere, coal-fired plants are being reconsidered due to the pressing need for power.
The surge in AI development and deployment is driving this increased energy demand. Data centers, which house the servers that power AI systems, require massive amounts of electricity to operate and cool their equipment. As a result, energy companies are looking to maximize their power generation capacity, including revisiting previously mothballed coal-fired facilities.
This trend presents a complex challenge for environmental goals. While coal-fired power plants can provide the needed energy, they also contribute significantly to greenhouse gas emissions and other environmental concerns. The balance between meeting AI’s energy demands and addressing environmental impacts will be a critical issue in the coming years.
